Herman Miller sales increase

Sales at Herman Miller, Inc., increased 7 percent for the last quarter, according to the company.

“Our strategy to diversify into new and emerging markets, both domestically and internationally, is gaining traction. This is evident both in terms of our top-line growth and the breadth of innovative solutions that we are launching in each of our business segments,” said Brian Walker, chief executive officer of the Zeeland-based office-furniture manufacturer.

The year-over-year increase in earnings per share for the fourth quarter of the company’s fiscal year was 42 percent, to a record 71 cents. For the full year, sales were up 4.9 percent and earnings per share were up 29 percent to a record $2.56.

Sales for the quarter ended May 31 were $519.1 million, reflecting a 7 percent year-over-year increase and sequential growth of 4.8 percent. Non-North American sales for the quarter were up 22.8 pecent year-over-year, while the North American market experienced 6.3 percent growth compared to the prior year. Orders for the quarter were $498 million, an increase of 4.4 percent from a year ago, with North American orders increasing 2.9 percent and non-North American orders up 16.3 percent over the same period a year ago.

Commodity prices increased through the quarter but were offset by several developments, including increased leverage of costs on higher sales volume.
Despite higher sales, operating expenses of $115 million declined by $3.6 million to 22.2 percent of sales, compared to the same period in fiscal 2007.

This decline is directly attributable to the restructuring aken earlier in the year and the company’s continuing focus on expense management.

The company’s cash position at the end of the quarter was $155.4 million. Cash flow from operations for the quarter totaled $90.4 million compared to $46.3 million for the same period last year. The year-to-year change in operating cash flow was primarily due to higher net income and positive improvements in working capital requirements in the current year. Capital spending for the quarter was $12.3 million compared to $12.8 million for the same period last year.

Over the full year, sales growth of 4.9 percent drove revenues above the $2 billion mark.

The company expects first quarter fiscal 2009 sales to be in a range of $470 million to $495 million.

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